Blog  |  Hierarchy of Google Ads: Which Ad Type is Best for Your Business?

Hierarchy of Google Ads: Which Ad Type is Best for Your Business?

Posted by ImageWorks Creative Team March 24, 2021
Busy black manager looks at mobile phone

Whether you’re in a competitive market, or you’re just looking to get a competitive edge, advertising on Google is an important part of a balanced digital marketing strategy. The different types of Google Advertising campaigns can lend themselves better to different business goals and budget. So, in order to get the best return on investment, what Google Ad type is best for you?

Budget-Friendly Google Ad Campaign Types

Google Remarketing Ads

The concept behind Remarketing Ads is that you target internet users who have already been to your website. Remarketing Ads keep your brand and products in front of potential customers, increasing their exposure and thus the likelihood they will convert to customers.

There are some numbers you have to hit before you’re eligible to use Remarketing ads, and those depend on what type of Remarketing Ads (Search, YouTube, Display, or Gmail) you want to run. Display Remarketing Ads have the lowest threshold, at just 100 website users in the last 30 days, and are in the sweet spot of higher ROI and lower creation effort than something like a YouTube Remarketing Ad (more on this later).

Google Remarketing Display Ads are ideal for businesses looking to start with Google Advertising. They are one of your cheapest options due to a low cost-per-click and your limited audience targeting.

Recommended minimum budget: $5/day or roughly $150/month

Google Smart Campaigns

Another low-cost option for businesses looking to start on Google Advertising is with Smart Campaigns. These Google Ads are directly connected to your Google My Business account and are focused on one of three goals:

  • Drive Phone Calls
  • Drive Store Visits
  • Drive Website Visits

This ad type is super helpful for local businesses looking for new ways to drive traffic, but since they don’t just focus on store visits, Smart Campaigns can help businesses that aren’t tied to a location as well.

Again, these ads are on the tight end of ad spending because you’re targeting your Google My Business service area as well as people only looking for your services. This close targeting puts you only in competition with those in your direct industry and area.

Recommended minimum budget: $7/day or within the competitive range Google Ads provides you when setting up your Smart Campaign.

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Google Search Ads

If you’re looking to actively entice in-market buyers and have a little more budget to spare, Google Search Ads are the popular option. While not as eye-catching as Remarketing Display Ads, Search Ads give you the ability to advertise to new prospects who haven’t heard of your brand (yet).

Depending on the industry you’re in, the price of Search advertising can be worth a pretty penny. They also have a lower likelihood of leading to an immediate conversion, but it opens up your targeting ability and reach to new audiences.

Recommended minimum budget: $20-50+/day, depending on the relative competitiveness of your industry.

Google Display Ads

If you’re willing to part with a little more of your marketing budget and you are part of a more visual industry, regular Display Ads may interest you. Where Remarketing Display Ads retarget users and Search Ads target keywords, Display Ads target topics. That is, you select the type of content you want to appear next to, in hopes of catching the notice of a user interested in said topic.

Because they have the broadest sense of targeting and images tend to be more persuasive, there is high competition for Display Ads. Not to mention you’re also competing with the content of the website itself for the user’s attention. That’s why standard Display Ads are on the higher end of Google advertising.

Recommended minimum budget: $150+/day or roughly $4,500+/month

Google Video Ads

The last ad type we’re going to talk about in this blog post is Video Ads. Video is perhaps the most engaging ad type you can run. After all, video allows you to quickly expand your brand story and connect with watchers.

If you have over 1,000 users visiting your site a month, you can use Remarketing Ad targeting with your Video Ad to pack a powerful marketing punch. The most successful Video Ads include stories about your customers & business or product demos, which tend to work in favor of B2C companies.

Recommended minimum budget: $10+/day, but you should also factor in the cost of video production (which is typically higher than other ad creative) into your campaign budget.

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When you’re just starting out with Google Advertising, it makes sense to limit yourself to one of the earlier Ad types on this list. However, as you develop your advertising strategy, you should be using a mix of these ad types in order to diversify your audience outreach.

By Jordan Latham

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